Bill Text: TX SB1321 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the consideration of a life insurance policy in determining eligibility for medical assistance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-04-23 - Left pending in committee [SB1321 Detail]
Download: Texas-2013-SB1321-Introduced.html
83R6743 KKR-F | ||
By: Duncan | S.B. No. 1321 |
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relating to the consideration of a life insurance policy in | ||
determining eligibility for medical assistance. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 32, Human Resources Code, | ||
is amended by adding Section 32.02613 to read as follows: | ||
Sec. 32.02613. EXCLUSION OF LIFE INSURANCE POLICIES UNDER | ||
CERTAIN CIRCUMSTANCES. (a) In determining eligibility and need of | ||
a person for medical assistance, the department shall treat a life | ||
insurance policy owned by the person in the manner provided by this | ||
section. | ||
(b) The department may not consider as assets or resources | ||
of a person who meets the state's nursing home level of care the | ||
value of a life insurance policy that is in force and owned by the | ||
person if the person enters into a life settlement contract in | ||
accordance with this section. In this subsection, "value" means | ||
the total amount of guaranteed periodic payments a person is | ||
entitled to receive under Subsection (c). | ||
(c) The owner of a life insurance policy with a face amount | ||
of more than $10,000 may enter into a life settlement contract under | ||
Chapter 1111A, Insurance Code, in exchange for guaranteed periodic | ||
payments to the state to be used only for the provision of Medicaid | ||
long-term care services to the owner of the policy. | ||
(d) In addition to the requirements under Chapter 1111A, | ||
Insurance Code, a life settlement contract entered into as provided | ||
by Subsection (b) must: | ||
(1) provide that the lesser of five percent of the face | ||
amount of the life insurance policy or $5,000 is reserved as a death | ||
benefit payable to the owner's estate or a named beneficiary; | ||
(2) provide that the balance of payments required | ||
under the contract that are unpaid on the death of the owner must be | ||
paid to the owner's estate or a named beneficiary; | ||
(3) include a schedule evidencing the total amount | ||
payable, the number of payments, and the amount of each payment | ||
required to be paid under the life settlement contract; and | ||
(4) require that all proceeds of the life settlement | ||
contract be held in an irrevocable state or federally insured | ||
account. | ||
(e) The department must provide as part of the application | ||
for medical assistance written notice of the option to enter into a | ||
life settlement contract as provided in this section. | ||
(f) The executive commissioner of the Health and Human | ||
Services Commission in consultation with the commissioner of | ||
insurance shall adopt rules necessary to implement this section. | ||
SECTION 2. Not later than January 1, 2014, the executive | ||
commissioner of the Health and Human Services Commission shall | ||
adopt rules necessary to implement Section 32.02613, Human | ||
Resources Code, as added by this Act. | ||
SECTION 3. The change in law made by this Act applies only | ||
to a determination of eligibility of a person for medical | ||
assistance benefits made on or after January 1, 2014. A | ||
determination of eligibility made before January 1, 2014, is | ||
governed by the law in effect on the date the determination was | ||
made, and the former law is continued in effect for that purpose. | ||
SECTION 4. If before implementing any provision of this Act | ||
a state agency determines that a waiver or authorization from a | ||
federal agency is necessary for implementation of that provision, | ||
the agency affected by the provision shall request the waiver or | ||
authorization and may delay implementing that provision until the | ||
waiver or authorization is granted. | ||
SECTION 5. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2013. |